Conducting Firm-Level Technical Assistance and Business Advi...

Conducting Firm-Level Technical Assistance and Business Advisory for 20 Palestinian SME’s

Programme Description: 
The Palestinian Market Development Programme (PMDP), is funded by UK Department for International Development (DFID) and European Union (EU) in-cooperation with the Ministry of National Economy and implemented by DAI Europe over a period of five years in the OPT, with offices both in Ramallah and Gaza.

The programme has been designed to improve market systems and improve the competitiveness of the Palestinian private sector. PMDP aims to improve private sector competitiveness through technical assistance and matching grants. Additionally, PMDP will work on strengthening trade and investment linkages as well as linkages with the Palestinian Diaspora to play an active role in economic development in the OPTs.

Programme Outputs:

Output 1: Improved Private Sector Skills and Innovation - Provide matching grants and technical assistance to firms or consortia – under a competitive process, which specifically help firms to innovate and develop their products/services, improve processes and enter into new markets.

Output 2: Address Market System Failures in Specific Sectors - Undertake market analysis and facilitation to address market system failures by identifying how specific market systems operate, identifying what factors drive underperformance, and facilitate improved performance and value chain integration and sharing of knowledge and best practice.

Output 3: Strengthening Trade and Investment Linkages with International Markets - Provide technical assistance to key market institutions to encourage and support foreign and local investment in Palestine. This component will also include support to the establishment of a cadre of commercial representatives in key markets to promote trade and investment, and will work to mobilize Palestinian Diaspora to explore opportunities to transfer knowledge and improve linkages on trade and investment.

Dimensions Consulting worked closely with the PMDP to provide technical assistance for Palestinian firms to improve their performance and competitiveness to enter new markets, develop and improve new products and to expand their current market share by providing Business Advisory activities and services within Dimension’s scope of work. 

Key Success Stories: 

1.    Customer Satisfaction Survey and Market Scoping Analysis for Dairy Products - Al Jebrini Dairy and Foods Industries Co. – Hebron, West Bank

Al Jebrini contracted Dimensions Consulting to provide research support services to Al Jebrini Dairy and Food Industries Co., tasked with conducting comprehensive market research on customer satisfaction with different Jebrini products.

Dimensions developed a questionnaire to measure customer satisfaction. 900 questionnaires were distributed across the West Bank, East Jerusalem and Gaza to end users and retailers. Focus groups were also held with groups of consumers and retailers.

Following field research, Dimensions analyzed data findings and submitted a final report to DAI and Al Jebrini that covered:

  • Assessment of the local market for dairy products 
  • Market size and market share
  • Supply and demand analysis 
  • Value chain 
  • Competition mapping
  • Potential for new entrants/products
  • Recommendations for future improvements

Successful result-oriented outcomes from this project: Al Jebrini Dairy took into consideration all of the recommendations provided by Dimensions Consulting in enhancing their current operations, all the results of the research and the customer feedback were reflected and they have developed new products meeting customer demand and preferences, in addition to the enhancement of the current products. 

Measurable Results: 

  • Increase market share from 5–10 % 
  • Developed 8 new products to penetrate new markets and reach more customer segments
  • Enhanced their marketing channels and distribution with an adjustment for customer preferences

2.    Preliminary Feasibility Assessment – Capitol Hotel – Jerusalem

Founded in 1963 and located in close proximity to the Old City, the Capitol Hotel was considered to be one of the most hospitable hotels in Jerusalem, with a strong reputation in the market. By 2016, it was clear to the owners of the Hotel that the structure was in need of renovation, covering all facilities and services located within the Hotel: bedrooms, furniture, public spaces, outdoor restaurant, terrace and bar.

The Hotel contracted Dimensions Consulting to undertake a preliminary feasibility assessment for the proposed renovation. To this end, Dimensions performed the following tasks:

  • Defining and describing target visitors (pre- and post-renovation)
  • Analyzing competitors, demand and supply
  • Analyzing market trends, market growth, lifecycle and seasonality
  • Estimating the proposed costs for renovation
  • Providing comprehensive financial analysis that includes a breakdown of project costs, break-even analysis, income statement, cash flow projections for 3 years, project returns, payback period and sensitivity analysis
  • Summarizing findings and key recommendations

3.    Business Expansion Plan and Feasibility Assessment - Akluna Natural Foods – Ramallah, West Bank 

Akluna Natural Foods delivers flavorful foods from Palestine directly to consumers in international markets. Akluna works closely with Palestinian farmers in choosing the highest-quality ingredients for its wide range of products. Akluna owns and operates numerous manufacturing and processing plants across the West Bank, and maintains its own label and brand for products that it sources.

Akluna commissioned Dimensions Consulting to develop a business expansion plan, to help the company to obtain certifications required for export activities, to penetrate additional export markets and boost its sales in the Gulf, Europe, China and the US primarily. The business plan provided the following details:

  • Description of the intended expansion
  • Feasibility analysis of the intended expansion
  • Implementation plan for the expansion 
  • Assessment of the historical performance of the company
  • Dimensions performed a seamless execution of required activities, providing Akluna with:
  • Opportunity Analysis (market segmentation, market share, competition analysis, SWOT analysis)
  • Marketing Analysis (target markets, marketing mix)
  • Expansion Plan (operations, management, organizational structure)
  • Financial Analysis (Key assumptions, financial projections, financial plan and valuation)

4.    Feasibility Study, Market Research, and Branding  – Saltly Co. – Jericho, West Bank  

Saltly Co. commissioned Dimensions Consulting to undertake a feasibility study for a new business venture: a salt processing factory that could produce a range of salt products for sale to culinary outlets and consumers in Gulf countries, in addition to the bulk distribution of coarse and refined salts in regional markets.

Accordingly, Dimensions conducted a feasibility assessment for the new venture, providing information on industry insights (market trends, supply chain, value chain, Porter’s five forces, operating models) and financial projections for both costs (OPEX, CAPEX) and returns (ROI, IRR).

After the completion of this assignment, Saltly Co. asked for Dimensions to support the process of establishing a brand for salt products. Dimensions then worked with Saltly Co.’s marketing unit and external designers to develop a brand name, slogan, and key messages for new, gourmet salt products.

5.    Business Support Services for the Establishment and Operation of RIC (Ramallah Investment Company) – Ramallah Municipality, Ramallah, WB

Ramallah Municipality prioritizes economic development through job creation projects and the formulation of local investment policies that promote investment. The Municipality partners on with private sector agents in Private Public Partnership (PPPs), working mainly with businessmen from the Palestinian diaspora.
Dimensions Consulting was contracted by PMDP to work with Ramallah Municipality in establishing RIC: the Ramallah Investment Company. Shareholders in this PPP include the Municipality, local investors and Palestinian businessmen living overseas.

The scope of work performed by Dimensions included:

  • Legal due diligence to assess the most appropriate registration option for RIC.
  • The preparation of legal documents for the registration of RIC.
  • Analysis of the legal issues governing the establishment and operation of investment companies. 
  • Identifying municipal services that can become potential subsidiaries of RIC.
  • Market research to identity the top 10 investment opportunities for RIC (both existing businesses and new start-ups) with an emphasis on real/commercial estate development, retail and services.
  • Drafting a concept paper for each business opportunity.
  • Preparing a business prospectus for presentation at an investors’ conference, covering the 10 identified opportunities.
  • Promoting RIC and its potential investments through events, networking and road shows.

6.    Marketing and Business Development Plan – Kingdom Dates Co., Jericho, West Bank 

Kingdom Dates Company is a privately owned company, located in Jericho Agro Industrial Park. KDC produces powdered sugar extracted from fruits mainly Dates Sugar/ Powder.

Kingdom Dates contracted Dimensions Consulting to develop a marketing and business development plan for its company, the scope of work performed by Dimensions included:

  • Situation Analysis
  • An overview of Kingdom Dates Co. situation with a special regard to sector, leaders’ marketing benchmarks;
  • Description of Kingdom Dates Company’s current product and/or services 
  • Company’s marketing advantages and challenges;
  • Assessment of threats posed by Kingdom Dates Company’s competitors;
  • Assessment of external factors that will most probably significantly affect the company’s business in the coming years.
  • Identifying target market: List of Kingdom Dates Co. target audience(s); a target-audience profile based on demographics, including age, gender and any other important characteristics; A classification of Kingdom Dates Co.’s target audience(s) by type of business client including main qualification criteria for target audience.
  • Developing marketing strategies and tactics including a description of the different marketing strategies to be pursued in the coming years; a full and detailed launching campaign for the targeted audience and the overall targeted markets; For each of the marketing strategies defined a corresponding Action Plan outlining (sub-) activities, corresponding marketing tools proposed (advertisement/public relations/direct mail/trade shows/special promotions, proposed Action Plan time frames, list of responsible staff members, corresponding indicators of performance and sources of verification to measure performance achieved;
  • Budgeting; Dimensions provided a breakdown of the costs associated with each of the company’s Marketing Strategies/Action Plans and launching campaign identified; Total Marketing Plan budget including a cost/benefit analysis for each of the Marketing Strategies proposed leading to a prioritization within the various Marketing Strategies proposed.
  • At the end of the assignment Dimensions supported the company in sitting a professional marketing department and management system for that department including procedure manuals and job descriptions aligned with key performance indicators for the marketing department. 

Successful result-oriented outcomes from this project: 

  1. Raise awareness and evoke interest about date sugar through online content.
  2. Widen Kingdom Dates social media followers base by 30,000, and maintain high engagement rate. 
  3. Found 2 wholesaler and retailer on each target market.
  4. Developing the company online store and social media channels

1.    Business Advisory and Technical Assistance for the Private Sector Development cluster Project (PSDCP) 

The Federation of Palestinian chambers of Commerce, Industry and Agriculture (FPCCIA) was established in1989 in Jerusalem as the umbrella organization for all chambers in the west bank and Gaza, as a legal and autonomous body representing the interest of all chambers and the private sector. Its mandate is derived from the chambers' law, which defines the legal boundaries for the federation’s operations, and the decisions made by its council that are approved by the general assembly. As such the FPCCIA is entitled to represent and support the development of the private sector community in Palestine.

In line with this mandate, the FPCCIA has concluded the implementation of the Private Sector Development cluster Project (PSDCP), in partnership with the Palestinian Ministry of National Economy with funding from the French Development Agency, that have successfully piloted the development of five cluster initiatives:

  1. Furniture Cluster – Salfit, West Bank 
  2. Stone and Marble Cluster – North Hebron and Bethlehem, West Bank 
  3. Leather and Shoe Cluster – Hebron 
  4. Dates and Palms Trees – Gaza 
  5. Tourism and Creative Arts – Jerusalem 

One of the key results of the cluster project is the institutionalization of the clusters through establishment of the cluster associations under the umbrella of the related chambers aiming to strengthen the competitiveness of clusters’ members, especially MSMEs, in order to increase their market share of the domestic market as well as explore new export markets by providing a variety of support services to these clusters including the cluster animation services and collective projects amongst others.
Dimensions Consulting serviced as a Business Advisory and Consulting Firm for the cluster project over the years and we have worked closely with the 5 clusters to enhance their capacities and develop their skills and technical knowhow in different areas.

Key Success Stories: 

1.    Al Bazaar Feasibility Study (Project), Jerusalem

Dimensions Consulting have been contracted to create a feasibility study in order to establish and rehabilitate the Bazaar area. The main purpose behind the assignment was to prepare a feasibility study that will answer the economic feasibility and suitability for the Bazar Project, in addition to assessing the associated risks and threats.

Following the main purpose above, Dimensions Consulting scope of services included the following:

  • Bazaar assessment for the suggested locations: Location relevance (area, transportation, attraction, rents, etc.) 
  • Available infrastructure 
  • Local governance regulations and permits 
  • Risks and obstacles 
  • Contracting requirements

As for the market viability, Dimensions worked on describing the target visitors of the bazaar, including key market segments, size and growth and analyzing all relevant factors,
We have also worked on investigating the capacity and rationale of the cluster members who are willing to rent space and participate in the Bazaar area:

  • Analyzing competition 
  • Demand and supply 
  • Market trends and market growth 
  • Consumer behavior and lifecycle and seasonality 
  • Assess the appropriate marketing plan needed
  • Critical risk factors that might affect the intended investment and the strategy to mitigate these factors. 

As for economic and financial model viability, Dimensions Consulting worked on conducting a full financial feasibility study that included the following: 
Comprehensive financial analysis including breakdown of the project cost, breakeven point, income statement, cash flow projections for 3 years, project returns, payback period and sensitivity analysis … etc. 

2.    Leather and Shoe Cluster Product Costing and Profitability Training and Coaching – Hebron, WB 

To achieve some of its objectives, PSDCP Hebron cluster for Leather and Shoes industries has requested consulting services to provide an in-depth training and coaching program for 10 companies from the cluster. Dimensions Consulting was awarded the assignment, and conducted the training and coaching accordingly.
The two-day formal training touched on basic financial concepts, and introduced the costing and profitability analysis tool. The coaching sessions (two per company) were more customized for each company, and used specific information provided by representatives of these companies.

Companies were given examples from within their product lines, and were asked to continue filling the tool accordingly. At the end of the coaching, progress was evaluated, and recommendations were given to ensure maximum benefit. 

3.    Market Research and Marketing Plan – Hebron Leather and Shoe Cluster 

The Private Sector Development Project (PSDCP), implemented by the Ministry of National Economy (MoNE) and the Federation of Palestinian Chambers of Commerce, Industry and Agriculture (FPCCIA), with an overall objective to strengthen the competiveness of local companies, especially MSMEs. The main target is market share (domestic and global), where the project aims to increase local MSMEs’ market share, and/or enable them to explore new markets for exporting. 

The main objective is to have a clear understanding of the leather and shoes market in WB and Gaza in order to develop a market strategy to increase market share of such industry

Dimensions Consulting contribution and tasks addressed the following:

  • All available secondary market data relevant to the company’s product (Footwear) in terms of market structure, size, growth patterns, supply chain structure, trends, fashions, import statistics and origin, etc.
  • Identify the basic customer profile in the targeted market particularly the footwear shops, wholesales’, and distributors, and their specific requirements for suppliers’ approval, typical buyer, seller contracts.
  • Identify the needs and expectations and buying habits and occasions of the profiled customers.
  • Identification of the key market segments, its characteristics, key players, trends, requirements …etc.
  • Conduct a comprehensive competitors’ analysis based on locally available information as a bench mark for the cluster including locations, facilities’, product portfolio, pricing, distribution or any other differentiation factors.
  • Review and list all available promotional literature, and marketing tools technical material (if appropriate) of competitors active in the targeted market.
  • Gather available information on prevailing pricing and discount structures and appropriate payment terms;
  • Review all regulatory and compliance issues relevant to the company’s product area in the targeted segments.
  • Identify special challenges pertain to the targeted market (competition, cultural issues, import controls, etc.
  • Identification of new opportunities for the cluster in the local market.

4.    Branding & Communication Plans for 5 Clusters 

To achieve some of its objectives, PSDCP has requested a consulting service to create a branding recognition and Communication plans for the 5 clusters (Stone & Marble, Leather & Shoe, Date Palm Trees, Furniture, and Tourism & Creative Arts). Dimensions Consulting was awarded the assignment, and conducted the assignment accordingly.

The purpose of this assignment was to create a brand identity for each of the five clusters to support the development of a well-recognized brand both nationally and internationally to enhance their competitiveness and strengthening their positions in the local and export markets. 

Dimensions Consulting scope of work was to conduct:

  • Awareness sessions to explain the branding platform, its purpose and benefits and how the cluster stakeholders can put it into practice. (Five sessions one in each cluster)
  • To identify and define a desired brand image for each cluster based on each clusters vision.
  • Produce draft brand identities for each cluster to be presented to the cluster core group and Cluster Action Team (CAT) for comments and inputs as appropriate.
  • Develop specific guidelines on how each brand identity could be used to improve the image of the cluster.
  • Recommend an appropriate communication strategy (with projected costs) for cascading the newly developed branding strategy that concentrates on actions and tools in-order to bring the brand to life for each cluster.

Successful result-oriented outcomes from this project: 

  1. Opening the first unique selling point for Hebron Leather and Shoe Cluster to penetrate the Palestinian market taking into consideration the identified demand and the feasibility analysis Dimensions provided
  2. Creating 5 brand identities for each of the 5 clusters with communications plans to increase awareness for the outreach and potential stakeholders. 
  3. Training and coaching program for 10 companies from the cluster on basic financial concepts, and introduced the costing and profitability analysis tool. The coaching sessions were more customized for each company, and used specific information provided by representatives of these companies. This result on an enhancement on the financial situation of the 10 companies with a better use of financial assumptions in determining the costing and pricing methods. 
  4. Creating more than 100 Jobs in all of the 5 clusters. 
     
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